The mobile messaging company has already rejected a $3 billion
offer from Facebook and is reportedly raising money at a $10
billion valuation.

Although Spiegel's comments are 13 months old, the stocks he
mention have only continued to rise while the Fed has kept rates
low, so there's no reason to think his opinion has
changed. Here's what he
said:

[M]y view of the market is as follows --

Fed has created abnormal market conditions by printing
money and keeping interest rates low. Investors are looking for
growth anywhere they can find it and tech companies are good
targets - at these values, however, all tech stocks are expensive
- even looking at 5+ years of revenue growth down the road. This
means that most value-driven investors have left the market and the remaining
5-10%+ increase in market value will be driven by momentum
investors. At some point there won't be any momentum investors left buying at
higher prices, and the market begins to tumble. May be 10-20%
correction or something more significant, especially in tech
stocks. Facebook has continued to perform in the market despite
declining user engagement and pullback of brand advertising
dollars -- largely due to mobile advertising performance -
especially App Install advertisements. This is a huge red flag
because it indicates that sustainable brand
dollars have not
yet moved to Facebook mobile platform and mobile revenue growth
has been driven by technology companies (many of which are VC
funded). VC dollars are being spent on user acquisition despite
unknown LTV of users - a recipe for disaster. This props up
Facebook share price and continues to justify VC investment in
technology products based on abnormally large mkt cap companies
(i.e. "If this company attracts just 5% of users that FB has, it
will be HUGE" - fuels spend on user acquisition as user growth is
tied to values). When the market for tech stocks cools, Facebook
market cap will plummet, access to capital for unproven
businesses will become inaccessible, and ad spend on user
acquisition will rapidly decrease - compounding problems for
Facebook and driving stock even lower. Instagram may be only
saving grace if they are able to ramp advertising product fast
enough. Total internet advertising spend cannot justify outsized
valuations of social media products that derive revenue from
advertising. Feed-based advertising units will plummet in value
(in the case of Twitter, advertising spend may not move beyond
experimental dollars) similar to earlier devaluing of Internet
display advertising.

Spiegel, then-23, also commented on how his mobile
messaging app fits into this environment:

THAT SAID, we are still in very early days in mobile application
market. I remember growing up wishing I had been a part of PC
revolution - and I feel very fortunate to havethe opportunity to watch smartphones take off.
Snapchat has become one of the top 5 mobile phone brands with
Facebook, Twitter, YouTube, and Instagram.

For Snapchat to capitalize on market conditions in next 3 years,
it is imperative that we become a revenue-generating company.
That will allow us to attract the best talent and prosper despite
extreme scrutiny on traditional social media that
will have failed to deliver on
$$$ dreams. Team is working overtime to drive revenue and
innovate on core product - we have a solid 3-year roadmap that we intend to
follow.

As a profitable growth company with a focus on mobile we will not
suffer from opportunities to raise capital at outsized valuations
despite market conditions. Strategically it is important for us
to keep expectations low with an understanding that Snapchat may
be valued on revenues going forward and that $800mm valuation for
a two year old company is remarkable and already more than enough
to grow into. With 13-15 months of runway extended by minimally
successful revenue generation activities I think we are
positioned to capture the mobile communication market.

I disagree wholeheartedly with the notion that mobile will be
forever fragmented - we are the only differentiated messaging
service in the United States and we will continue to provide a
unique and innovative product experience. Snapchat is not
valuable in the long-term because it is used by teens or because
it is a threat to Facebook. It is valuable because it has
fundamentally changed the nature of digital communication in
<2 years and will continue to do so for the life of the
Company (may it be long and prosperous).

Our focus in the immediate term is revenue generation, growth and
product development.